The Government of Spain will approve this Tuesday the third anti-crisis plan, with new measures to stop the escalation of food prices and the extension of others. The big unknown is whether it will extend the fuel bonus for all vehicles.
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The Government of Spain has decided to promote more support measures to deal with the current situation. Thus, the Council of Ministers will approve tomorrow, December 27, the third aid package to mitigate the economic and social consequences of the war in Ukraine.
Within this package, which will enter into force on January 1, will include the extension of some of the measures currently in force and that expire on December 31, and other new ones related, mainly, to the shopping basketalthough it will also include support for the gas-intensive and ceramic industry.
New support measures
Despite the fact that in recent months Spain has managed to moderate the rise in prices, one of the new initiatives that is gaining momentum is the VAT reduction on certain products of the shopping cart, such as fish, with the aim of cushioning the impact of rising inflation.
In addition to the VAT reduction, a aid check of about 300 euros to alleviate the cost of the shopping cart, which will benefit around eight million people.
Extension of measures currently in force
The Government of Spain will extend throughout the year 2023 the gratuity of the CercanÃas and Media Distancia tickets for frequent travelers.
In tax matters, the reduction of the VAT on electricity (from 10% to 5% from July 1) ) will be extended and the rest of the measures in force will be maintained, such as the extension of the social bonus discounts or the reduction of other taxes linked to electricity.
In addition, within the extension of the decree on anti-crisis measures, the transitory increase of 15% of the Minimum Vital Incomethe prohibition of the suspension of the supply of electricity, gas and water, and the ceiling of 2% for the annual rent update of the habitual residence.
It is also expected that the Government of Spain will extend the coverage of suspension of evictions habitual residence for vulnerable individuals and families. And the increase in energy costs will continue to be unable to constitute an objective cause for dismissal in companies that receive aid.
It should also be remembered that the Government of Spain included in its second aid package approved in June a direct aid of 200 euros for wage-earners, the self-employed and the unemployed registered in the employment offices who reside in households with an income of less than 14,000 euros and the freezing of the maximum price of butane cylinder at 19.55 euros.
What will happen to fuel aid?
One of the most questioned measures is the extension of the bonus of 20 cents per liter made out of fuel. It is not yet clear what will happen with this discount, but the First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, has acknowledged that it is a controversial measure due to its fiscal impact and because it benefits those who have a car and not the most vulnerable classes.
For this reason, the economic manager of the Government of Spain has opened the door to “focus it on the sectors that may be most affected”, among which she has mentioned transport, agriculture, livestock and fishing.
Source: Eitb
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